Excise.

[Former Member]

Hi,

what r the condition type we r using in Excise Duty,Cess,H edu cess,Sales tax And what r steps we maintatin in pricing procedure,please give the solution for this.

Thanks,

Ras.

[Former Member]

Hi Rashmi Das,

Pls find enclosed the two documents.

Pls go through..

Regards,

Raghav

CIN OVERVIEW

Objective

The objective of this document is to make available on paper some of the critical features of CIN so as to make CIN implementation easy. This document is beyond a user manual and is intended only for people who would be implementing CIN in any customer location. This document gives a brief overview of CIN and is more inclined towards Sales & Distribution module.

Brief About CIN :

The CIN component covers the important laws and business practices specific to India.

Country-Specific Functions

 Country Version India comes with functions for calculating, posting, and remitting excise duty

 The system determines the excise and other taxes on your sales.

 You can create outgoing excise invoices and make the appropriate accounting postings.

 The system offers functions for domestic and export sales from factories and depots.

 All goods movements are recorded in the appropriate excise registers as required by the Regulations.

 You can remit the excise duty using the delivered functions.

 The country template for India comes with sample pricing procedures, including all taxes, and settings for automatic account determination to the appropriate excise accounts.

Types of excise duties:

Excise duties are of following types

• Basic excise duty to be termed as Cenvat - Basic excise duty is levied at the rates specified in First Schedule to Central Excise Tariff Act.

• Special duty of excise - Some commodities like pan masala, cars etc. are leviable with special duty. These items are covered in Schedule II to Central Excise Tariff.

• Duties under other Acts - Some duties and cesses are levied on manufactured products under other Acts. The administrative machinery of central excise is used to collect those taxes. Provisions of Central Excise Act and Rules have been made applicable for levy and collection of these duties / cesses.

• Additional Duty on goods of special importance - Some goods of special importance are levied Additional Excise under Additional Duties of Excise (Goods of Special Importance) Act, 1957.

• Cess - A cess has been imposed on certain products like automobiles, jute, tea, tobacco etc. A education cess is also imposed on the excise duty from the current year.

• Education CESS (ECess) – Education Cess has been imposed on all products under the Excise Act, 2005. The rate is 2%.

Sales Scenarios in CIN :

Scenario 1 : Sale from Factory

The process flow is as below

The Tax implication

• Basic Rate 100.00

• Excise Duty (16 %) 016.00

• Ecess (2% on Excise) 000.32

• Tax base amt 116.32

• Sales Tax (4%) 004.65

• Total 120.97

Accounting Entries For Factory Sale :

During Billing Document

Customer Account Dr.

Sales Account Cr.

Cenvat Suspense Account Cr.

During Excise Invoice Creation

Cenvat Suspense Account Dr.

Cenvat payable Cr.

For TR6C Challan

PLA Account Dr.

PLA on hold Account Cr.

During Fortnightly Utilization

Cenvat payable Dr.

Cenvat Account Cr.

PLA Account Cr.

Scenario 2 : Stock Transfer Order

Accounting Entries For Stock Transfer through SD

(No Accounting entries for Proforma Billing Document)

During Excise Invoice Creation

Cenvat Suspense Account Dr.

Cenvat payable Cr.

For TR6C Challan

PLA Account Dr.

PLA on hold Account Cr.

During Fortnightly Utilization

Cenvat payable Dr.

Cenvat Account Cr.

PLA Account Cr.

Note: Cenvat Suspense Account should be cleared apprpiately using FI JV’s.

Scenario 3 : Export Under Excise Regulations

Manufacturing plants are entitled not to pay any basic excise duty on export sales, as long as the goods are accompanied by an ARE document.

A document, in India, that accompanies exports and deemed exports. The documents ensure that you do not have to pay excise duty on these transactions.

The system handles AREs and the appropriate permit documents, such as export bonds and deemed export licenses.

There are three possible scenarios for Export :

 Exports Under Bond

 Exports Under Claim for Rebate

 Deemed Exports.

Exports Under Bond

One of the ways of exporting goods without paying basic excise duty is to obtain an excise bond from the excise authorities and then fill out an ARE-1 document to go with every export.

In order to qualify for an exemption from excise duty, all exports must be accompanied by the appropriate paperwork, including an ARE-1 document, and you must complete the export within the export period.

Export Period is the the maximum length of time that you are allowed to export goods from India after you have removed them from your premises.

If you exceed the export period, you forego the exemption from basic excise duty and you must pay the excise duty to the excise authorities.

The system automatically keeps track of the bond balance.

ARE-1 Processing

Process Flow

 The excise clerk creates an ARE-1.

 He then calls the local excise department and asks them to send an excise officer to check the goods.

 The excise officer comes and checks that the goods match what is on the ARE-1. He fills out Part A of the form (Certification by the Central Excise Office).

 The clerk then posts the ARE-1 and prints out the requisite number of copies.

 The excise officer signs the ARE-1s and takes one copy with him.

 The shipping department sends the goods to be exported, together with the excise invoice and the ARE-1.

 Before the goods can leave the country, they have to go through the customs office, for example, at the airport or at the port.

 When the goods arrive at customs, the customs officer checks whether the excise invoice and the ARE-1 match the goods.

 If he finds that there are fewer goods than stated on the ARE-1, he enters the shortfall in the ARE-1.

 He then fills out Part B of the ARE-1 (Certification by the Customs Officer) and sends it back to the excise clerk. One of the copies is in a sealed envelope.

 When the excise clerk receives the ARE-1, he updates the ARE-1 in the system.

 He fills out the various certification dates in the ARE-1 (for example, the date when the ARE-1 arrived back at your company).

 If the customs officer noted a shortfall in the quantity of goods, the excise clerk enters the shortfall as well. Since the whereabouts of the missing goods cannot be accounted for, they no longer qualify for exemption from excise duty. Your company is therefore liable for the excise duty on the shortfall, plus interest, backdated to the date when you removed the goods from your premises. The clerk specifies which excise registers to pay the excise duty from.

 The clerk sends the ARE-1 in the sealed envelope to the excise department.

 The excise officer cross-checks this copy of the ARE-1 with his own copy. When he is satisfied that everything is correct, he sends the excise clerk a final confirmation.

 When the excise clerk receives the confirmation, he closes the ARE-1.

 The process is now complete.

Exports Under Claim for Rebate

 If you have not obtained an excise bond, you must pay any excise duty liable when removing goods from your premises for export. However, you can claim a rebate for the excise duty once you have completed the export

 In order to qualify for a rebate on the excise duty, all exports must be accompanied by the appropriate paperwork, including an ARE-1 document, and you must complete the export within the export period.

Deemed Exports

A sale of goods, in India, to a company that qualifies as an export-oriented unit or is located in one of the following:

 Export processing zone

 Electronic hardware technology park

 Software technology park

Such companies export most of their goods; and so any goods that you sell them are liable to be used in the production of goods for export, hence the term "deemed export."

Under the terms of the deemed exports scheme, these companies can obtain licenses that exempt them from payment of basic excise duty on certain input materials.

 You can ship deemed exports to any customers in possession of a deemed export license without paying any basic excise duty

 In order to qualify for an exemption from excise duty, all deemed exports must be accompanied by the appropriate paperwork, including an ARE-3 document, and you must complete the deemed export within the rewarehousing period

 In the deemed exports scheme, the maximum number of days allowed between your removing goods from your premises and receiving the countersigned ARE-3 back from the buyer.

If you exceed the rewarehousing period, you forego the exemption from basic excise duty and you must pay the excise duty to the excise authorities.

 ARE-3

A form, in India, that allows companies to sell otherwise excisable goods from their premises without paying basic excise duty. The buyer of the goods must be in possession of a deemed export license.

The ARE-3 states what goods are being removed and which deemed excise license covers it.

ARE-3 Processing

Process Flow

The export clerk creates an ARE-3 and, when he is ready, posts it.

 He also prints out the ARE-3 and encloses a copy with the delivery.

 The shipping department sends the goods to the customer, together with the excise invoice and the ARE-3

 When the customer's warehouseman receives the goods, he checks whether the excise invoice and the ARE-3 match the goods.

 If he finds that there are fewer goods than stated on the ARE-3, he enters the shortfall in the ARE-3.

 He then fills out Part 2 of the ARE-3 (Certificate of Warehousing by the Consignee) and sends it back to the excise clerk.

 When the excise clerk receives the ARE-3, he updates the ARE-3 in the system.

 He fills out the various certification dates in the ARE-3 (for example, the date when the ARE-3 arrived back at your company).

 If the warehouseman noted a shortfall in the quantity of goods, the excise clerk enters the shortfall as well. Since the whereabouts of the missing goods cannot be accounted for, they no longer qualify for exemption from basic excise duty. You must therefore pay the excise duty on the shortfall, plus interest, backdated to the date when you removed the goods from your premises. The clerk specifies which excise registers to pay the excise duty from.

 The process is now complete.

Excise Invoice Type :

Use

The excise invoice type denotes whether the goods are for the domestic market, or if they are for export, whether they are for export under bond, deemed export, or export under rebate. For more information about these processes, see Excise Bonding.

Features

In the system, when you set the excise invoice type, it controls:

• How the excise duty is calculated

• Which ARE documents you process the export with

Activities

When you come to create an excise invoice for an export sale, if you need to change the excise invoice type, follow this procedure: 1. Set the excise invoice type to Deemed, Bond, or No bond.

2. Choose Calculate Tax.

The system recalculates the excise duty according to the excise invoice type (see below). To do so, it translates the assessable value into the local currency as at the excise invoice date. What happens next depends on the excise invoice type:

 Exports under bond

The system sets the excise duty to zero and generates an outgoing excise invoice. It does not generate any entries for the Part II register.

The excise invoice is created with an export excise invoice number.

 Deemed exports

The excise to be paid will be zero. This information will be used when the Part II registers are downloaded.

When the system creates the excise invoice, it numbers it as a domestic excise invoice.

 Nonbonded exports

The system applies the tax code defined in Customizing for Logistics – General, under Taxes on Goods Movements ® India ® Basic Settings ® Determination of Excise Duty ® Maintain Excise Defaults, and calculates the excise duty as normal.

Again, the excise invoice is created with an export excise invoice number.

Condition-Based Excise Determination :

Use : When you enter a purchasing document, for example, a purchase order, the R/3 System automatically calculates the applicable excise duties using the condition technique.

Features : The standard system comes with two tax calculation procedures. TAXINN is only supports condition-based excise determination, whereas TAXINJ supports condition-based excise determination and formula-based excise determination.

Both tax procedures contain condition types that cover all of the excise duties and sales taxes applicable.Since the exact rates of excise duty can vary on a large number of factors, such as which vendor you purchase a material from, or which chapter ID the vendor stocks the material under, you create condition records for every sort of excise duty.

When you come to enter a purchasing document, the system applies the excise duty at the rates you have entered in the condition records.

Customizing

Make the settings in Customizing for Logistics – General, by choosing Taxes on Goods Movements  India  Basic Settings  Excise Duties Using Condition Technique and …  Account Determination. These activities include one activity where you define a tax code for condition-based excise determination.

Master Data

Create condition records for all excise duties that apply, and enter the tax code for condition-based excise determination in each.

Day-to-Day Activities

When you enter a purchase order or other purchasing document, enter the tax code for condition-based excise determination in each line item. The system then calculates the excise duties using the condition records you have created. When the ordered materials arrive, you post the goods receipt and the excise invoice. The system posts the excise duty to the appropriate accounts for deductible input taxes when you enter the excise invoice.

Formula-Based Excise Determination :

Use

When you execute a business transaction involving materials that are subject to excise duty, the system automatically calculates the duty for you.

Prerequisites

In order for the system to be able to determine which rate of excise duty to apply, you must have maintained all the data on the Excise Rate Maintenance screen, which you can access from the SAP Easy Access screen by choosing Indirect Taxes  Master Data  Excise Rate Maintenance.

You maintain the following types of data :

• Plant master data

You assign each of your plants an excise duty indicator. You can use the same indicator for all the plants with the same excise status from a legal point of view, such as all those that are in an exempt zone.

See also the information about manufacturers that are only entitled to deduct a certain portion of the duty (see Partial CENVAT Credit).

• Vendor master data

For each of your vendors with the same excise status from a legal perspective, you define an excise duty indicator. You must also specify the vendor type – for example, whether the vendor is a manufacturer, a depot, or a first-stage dealer. You must also stipulate if the vendor qualifies as a small-scale industry.

For each permutation of plant indicator and vendor indicator, you then create a final excise duty indicator.

• Customer master data

Similarly, you assign the same excise duty indicator to each of your customers that share the same legal excise status.

Again, for each permutation of plant indicator and customer indicator, you then create a final excise duty indicator.

• Material master data

Each material is assigned a chapter ID.

• Excise tax rate

For every chapter ID and final excise duty indicator, you maintain the rate of excise duty.

If your business only qualifies for partial CENVAT credit, you must customize your system accordingly.

Activities

Let us consider an example to illustrate how the system determines which rate of excise duty to apply to a material. Assume you are posting a sale of ball bearings to a customer. The system automatically determines the rate of excise duty as follows:

1. Looks up the customer master data to see what status you have assigned the customer.

Let's assume you've assigned the customer status 3.

2. Looks up the plant master data to see what status you have assigned the plant.

Similarly, your plant has status 2.

3. The system looks up the table under Excise Indicator for Plant and Customer to see what the final excise duty indictor is for customer status 3 and plant status 2: It is 7.

4. The system determines the chapter ID of the ball bearing for the plant.

Let’s assume the chapter ID at plant for the ball bearings is 1000.01.

5. Finally, the system looks up the table under Excise Tax Rate to see what rate of duty applies to chapter ID 1000.01 under status 7.

Configuration Areas :

Following are some of the areas in where we need to do configuration for CIN .

SPRO  Logistic General  Tax on goods movement  India 

Basic Settings :

o Maintain Excise Registration

o Maintain Company Code Settings

o Maintain Plant settings

o Maintain Excise Groups

o Maintain Series Groups

o Maintain Excise Duty Indicators

o Maintain Postal Address

o Maintain Subtransaction types with text

o Select Tax calculation procedure

o Maintain Excise Defaults

o Condition-Based Excise Determination

o Define Tax code for purchasing documents

o Assign Tax code to company codes

o Classify condition types

Master Data :

o Maintain Chapter ID

o Assign Users to Material master screen sequence for excise duty

o Define Form Types

Account Determination :

o Define G/L Accounts for Taxes

o Specify Excise Accounts Per Excise Transactions

o Specify G/L Accounts Per Excise Transactions

Business Transactions :

o Incoming Excise Invoices

o Select Fields

o Define Processing modes per transaction

o Define Reference document per transaction

o Maintain Rejection codes

o Specify which movement type involve Excise invoice

o Outgoing excise invoices

o Assign billing type to delivery type

o Maintain default excise groups and series groups

o Subcontracting attributes

o Maintain movement type groups

o Export under excise regulations

o Make settings for ARE-1 procedure

o Make settings for ARE-3 procedure

o Maintain License types

o Printouts of ARE documents

o Maintain output type

o Specify printers

o Transaction configuration

o Define processing modes per transaction

o Define reference documents per transaction

o Maintain rejection codes

o Utilisation determination

o Maintain minimum balances for excise accounts

o Excise registers

o Specify SAP script forms

Tools :

o Long Text

o Number Ranges

o Message control

Transaction Codes used in CIN :

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SAP Tables used in CIN :

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User Roles :

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User-Exits

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SAP Notes to be used in CIN :

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FAQ :

CIN SD

o Can I have a different rate for incoming and outgoing transactions for the same material?

You can maintain exceptional rates for either incoming or outgoing based on the volume of exceptions data.

o What do I do if I have one chapter-id for incoming and another for outgoing and material code is the same?

Along with exceptional rate maintenance you can maintain the chapter-id which should be used for the outgoing transactions. This chapter-id will be used only for copying on to the document and will not be used for rate determination.

o What will happen if I have multiple rates with overlapping validity periods for the same chapter-id and tax indicator?

While picking up the rate for a given transaction system will check for that validity period where the valid from is the maximum but with in the pricing date and based on that pick up the rate applicable.

o How does CIN do the pricing?

CIN uses R3 condition technique for pricing along with the pricing formulae. Details are available in the CIN knowledge bank. Template pricing procedures are provided for various sales scenarios.

o How many tax codes do I need?

The number of tax codes will directly depend on how you want to account the sales tax. You can have CST and LST being determined by the same tax code if both can be accrued into the same account. Instead if you need separate account determination then you need separate tax codes. Also based on the tax concessions available you need to decide the various tax rates which need to be mapped.

o How do I open up more than one tax classification?

CIN comes with default customization to open up the tax classificvation fields. The procedure is as follows. You need to define as many condition types as the number of tax classification fields. Tbe following procedure could be used.

SPRO - Sales and distribution -Basic functions-Taxes - Tax

determination rules For Country 'IN' make entries as follows (This is precustomized in client 000 )

- Seq 1 - UTXJ

- Seq 2 - JTX1

- Seq 3 - JTX2

- Seq 4 - JTX3

In SPRO - Sales and Distribution - Basic functions - Taxes

Determine tax relevancy of master records

o How do I handle concessional excise?

This is explained in SAP note 335577. Having opened up the new tax classification fields you might have to do the following

o Customer taxes maintain the possible values for JTX3 . Each unique value should denote one concession rate. For eg 1 - normal excise duty

o Maintain the JTX3 value against the form code in J1IT -Define Form types Maintain the customer tax classification in customer master if the customer has got excise exemption

o Maintain the excise indicator in J1ID for the customer and form code and this indicator gives the final indicator o Forms database is used for determination of whether the form has arrived or not at the time of billing.

o The tax classification value gets defaulted from the customer master in the sales order. This can be changed in the header

billing data if required

o How does CIN determine the tax rates?

CIN determines taxes based on the chapter-id of the material. There are 2 levels for rate determination. First the system will check if there is an exceptional rate available. If this is available then that rate is picked up. This rate could be for a material or material and customer combination. If there are no exceptions then the system looks for chapter-id of that material. The customer will have an excise tax status which along with the plant status will give a final excise status. Based on the excise status and the chapter-id the rates are maintained.

o How do I handle sales tax concessions?

SPRO - Sales and distribution -Basic functions-Taxes - Tax determination rules For Country 'IN'

Build access sequences based on these new fields to point to the correct sales tax code You might have to have a new access based on region of delivering plant and region of ship to party

o How will CIN handle Indian VAT?

SAP can handle normal VAT regulations. CIN will take a review of the VAT rule when it is implemented in India and suggest the best business process to comply with the same.

o When I create a new tax code the excise lines are grey and I cannot maintain any value. What should I do?

This is happening because the Excise conditions for sales are statistical in the tax procedure for India. So while creating a new tax code you need to open the tax procedure remove the statistical flag, maintain 100% for all excise conditions. After saving the tax code you need to make the conditions statistical once again.

o When I release the billing document to accounting there is an error that the account key is missing?

This is happening because one or more lines in the tax procedure has a condition with a value but is not marked statistical. You need to check whether the conditions JMOD, JAED, JSED and JCES are marked statistical in the tax procedure. You cannot rectify the documents which are in error. The correction takes into effect only the future orders.

o When I release to accounting I get a message tax amount greater than tax base?

This is happening because the tax base for some tax condition is falling less than the tax base amount. R3 does not allow the tax base to fall below the tax amount. You need to check which condition is giving the problem and based on that you can verify the tax procedure from-to settings.

o Do I need to maintain the chapter-ids for each plant or can it be left blank?

If the same chapter-id is applicable for the material in all the plants then you need not maintain the chapter-ids for all the plants. You can leave the plant blank.

o When I try printing the excise register nothing comes up?

Check whether you have maintained the opening balance for the item in the corresponding register (Table J_2IACCBAL for register account balances). Next check whether you have maintained the sapscript forms which are used for printing the registers in the CIN configuration. Finally check whether the extraction has been done for the period.

o When I try to create RG1 issues entry the line turns red and nothing happens?

This is happening because you are trying to create an issue entry and the stock in the register is not enough to do the issue. So you need to first update RG1 with the receipts and then go into the issues.

o I have extracted the register data once but now I have added more transactions. Can I extract once more?

You can re-extract the data if you have added more transaction data for the given period.

o I am using another package for printing registers. Can I download the data once again?

To prevent data inconsistency in the third party application CIN does not allow you to re download the register data once it has already been downloaded.

o What is the issue classification for RG1?

You need to classify the RG1 entries as to whether they are receipts from manufacture or other receipts, clearances of various types so that they can be reported under the various headings as required by the Excise commissionerate.

o How do I maintain the opening balances for my register for the first time?

You need load them manually at the initial data upload.

o How do I get the opening balance for every month?

CIN calculates the opening balance for reporting purposes based on the transactions extracted in any period.

o Can I round the duty at the header level?

Duty can be rounded off in CIN only at the item level. Due to technical reasons duty round off is not provided at the header level.

o When I create an excise invoice for exports what exchange rate will the system take?

System picks up the exchange rate which is maintained in the CIN configuration data for the company code.

o With fortnightly utilization why do I need a part2 entry at the time of Excise invoice creation?

With fortnightly utilization you do not create an entry in the CENVAT or PLA registers. Instead CIN keeps a separate Despatch register and generates continuous serial numbers in this register that can be used for future reconciliation.

o Do I need to have balances in my CENVAT accounts at the time of Excise invoice creation?

At the time of excise invoice creation the debit is being made into an Excise payable account. So you need not have balances in the CENVAT account. You need to have enough money at the time of fortnightly utilization or you should have made a debit through TR6 into PLA.

o What are the exceptional reports possible?

You can list all the billing documents for which excise invoice is not created. You can get a list of all excise invoices for which billing document has been cancelled., You can also have a report of all cancelled excise invoice for which the billing document is still open.

o Can I know which are the billing documents for which there is no excise invoice?

Excise due list gives you all billing documents for which there is no excise invoice.

o Number range skipping happens for excise invoice. What could be the reason?

CIN number ranges are defined as not buffered. You need to check if this has been changed. If skipping happens never reset the number range.. you must report the problem to SAP support immediately so that they can help you resolve this.

o While doing excise invoice creation I get an error message that system failure during locking. What can I do?

While creating the excise invoice, at the time of saving system tries to lock the GL account that is getting updated with the new balances. S probably some one else could be changing the GL account data at that point of time. This is a very short phenomena and is meant to keep the data consistency.

o While doing depot sales invoice selection, list of invoices are not getting displayed. Why?

You need to check the customization settings for LIFOor FIFO and the invoices of which period you have set. Also you need to check the excise group which is being used. System will show you only those excise invoices which belong to the same excise group, plant, storage location and batch.

o Is it possible to add some additional duty on to the depot invoice with out A certificate?

No you need an A certificate if you have to get an additional duty in RG23D invoice. Alternative is to write customer specific routines which are not supported by CIN.

o How do I handle the returns at depot?

If there are returns to depot, that can be captured as any other receipt. You can enter the material document no of the return receipt and the data gets copid and you can copy into RG23D.

o How do I handle returns at factory?

There are no D3 procedures at the moment which is mandated by the excise department. Legally you can take credit for all the receipts and then pay the duty when it goes out after repair or to another customer. You can Excise invoice without PO route to take the credit.

o When I do excise invoice creation, the system issues a message not enough balance. Why?

This does not happen any more. There was a need felt that we should check the balance s even though we can pay the duty 15 days hence.

o I am not able to save the excise invoice text?

You need to check the object type for the object id J1IN. this can be done by checking the data of the view J_1IVTTXOB. The editor mode has to be set as ‘Application text with SAVE key ‘.

o How can I include more text ids for the excise invoice?

You can use the CIN IMG text maintenance option and add more ids with descriptors. For excise invoice creation the object is J1II. For depot receipts the object is J1IG and for depot sales it is J1IJ.

o Where does the excise invoice get the business area from?

Excise invoice does not allow entry of business area. The business area in the billing document is automatically taken for the excise invoice.

o Where does the excise invoice get the profit center from?

Excise invoice picks up the profit center from the billing document if it is available there. If it is not available there then it looks at the plant specific material master data and picks up if available.

o Why do I need tax jurisdiction?

Tax jurisdiction codes are one method by which you can maintain tax rates with out having multitude of tax codes. You can maintain the LST effectively with one tax code and multiple jurisdiction.

o What will the system do if I have not received the form at the time of billing?

The system will first check in the Form type maintenance whether the form is marked as required. This means that the form has to come by the time billing happens. Once you receive the form you need to enter it into the forms data base (J1IU) for the delivery document number. If the form receipt is not maintained then the billing will do a repricing and charge full tax for the particular excise duty.

o How does fortnightly utilization determine the accounts to be posted?

There is no transaction type for determining the accounts of the fortnightly utilization. The credit account of the transaction type ‘DLFC ‘ is used as the debit account here. For the credit side we pick the debit accounts from the GRPO, EWPO and TR6C transactions. So it is mandatory that whether you use EWPO or not you should have maintained the account determination for all transaction tyes for a given excise group.

o Can I have my own transaction types?

Transaction types are used internally by CIN for various pruposes. So you cannot define your wn transaction types. Alternate account assignments can be done using sub transaction types.

o What will batch utilization of modvat do?

Batch utilization is just an interface that helps you to complete the utilization of a set of documents in one step. This simply triggers individual utilization as a BDC so that the user interaction can be minimized.

o What is the number range used for export excise invoice?

Export invoices uses the number range object j_1iexcexp where as the local invoices uses the number range j_1iexcloc. Even though customers are free to use the same number series now there is no bar from using separate series.

o Can I create a zero duty excise invoice?

Zero duty invoices can be created both from sales as wellas using excise invoice other movements based on the business requirement. These invoices do not generate an accounting document.

o Is it possible to cancel an excise invoice with zero duty?

There is no problem in canceling a zero duty excise invoice.

o Where does the billing document get the account for excise duty payable?

The account determination rules of R3 billing is used for determining the account for the excise posting line in a billing document. The CIN customization has no role to play here.

o How does the stock transfer get the assessable value from?

This is got using the condition base value formula. For this to happen you should have maintained the assessable value in CIN master data.

o How do I know whether SD route or mm route is followed for stock transfer?

You need to check in SPRO – Materials Management – Purchasing – Set up Stock transport order – Assign delivery type/checking. For SD order this will be marked ‘A’

o Based on the route followed how do I create an excise invoice?

If SD route is followed for stock transfer then you can use J1IIN to create excise invoice. If MM route is used for creating stock transport order then you need to use J1IS for creation of Excise invoice.

o How to configure stock transport order?

Stock transport order is set up in SPRO- Materials management – Purchasing – Set up stock transport order. Here first you have to define the sales area and the default customer code. You have ato assign the order type to the checking rule. Finally you need to maintain the delivery type for the order type.

o I cannot create a proforma billing document for a replenishment delivery. What has gone wrong?

Normal R3 setting does not allow a billing document to be created for a delivery type NL. You need to change the customization settings of the item category type NLN so that it becomes relevant for billing.

o When I do a receipt at the depot from my factory how do I give the excise invoice number?

If the excise invoice already exists in the R3 system then in the detail screen of RG23D receipt you can directly enter the internal document number of the excise invoice. This will automatically allow the entrie challan details to be copied.

o Should I receive the full quantity at depot or transit loss is allowed?

You can receive some goods in the depot which is less than the dispatched. You have the option to enter the receipt quantity as well as the challan quantity at the time of RG23D receipt.

o I want to calculate the excise duties at the time of export sales. What should I do?

There is a calculate tax button on the utilization screen of Excise invoice creation.. This option will calculate the taxes for an export invoice.

o Can I use my own layouts for register printing?

Yes you can have your own layouts. You need to maintain the same in the CIN customization against the sap script form maintenance.

o Can I change the posting date at the time of fort nightly utilization?

You can enter the posting date as per which you want the system to do the fortnightly posting.

o Should I keep the fi/mm period open at the time of posting fort nightly utilization?

The current period alone should be open at the time of fortnightly utilization. It is also required that both MM as well as FI periods need to be open.

o When I run fortnightly utilization the system is showing zero balance even though there is some balance in the GL account?

The balances for utilization are picked up in CIN only when the MM period closing is done for the previous period. For eg. If you r posting date is 5th Dec and the November period is still open system will show zero balance.

o Can I change the document type for the accounting document created at the time of excise invoice creation?

Document type for excise invoice utilization is defined with in CIN customization at the company code level. You can use your own document type.

o Can I have excise rates more than 100%?

Yes you can have excise rates higher than 100% since some of the tobacco items carry higher excise rates.

o How do I map the tax classification to form types?

You can maintain it along with Form type definitions in CIN IMG.

o Can I decide not to generate folio numbers at the time of RG23D creation?

Yes you can keep the customization option at the Excise group level blank and also you can leave the user-exit open.

o What will happen when I cancel a RG23D selection for sales already made?

If you are canceling a selection before posting then the RG23D register the record will be removed. But if you have already done the posting then the RG23D record is marked cancelled and the balance in the original invoice is inflated by an equivalent amount.

o Why there is no transaction type for J2IU?

Transaction type is used for account determination by CIN . This is an internal entity for CIN and has no relevance to the business process. Since there is no account determination need for J2IU there is no transaction type.

General

o How do I know whether CIN is installed?

Run the function module test j_1bsa_component_check with component as ‘IN’ and you should get a return code ‘0’ and no exceptions. Before you can check this you should have applied SAP note 411079.

o How do I invoke CIN transactions?

Best way to invoke CIN transactions is to attach the pre delivered CIN roles to user profiles.

o What are the roles available in CIN?

Please see the section below of the knowledge bank. Alternatively in an R3 system with CIN you can use the transaction PFCG (Profile Generator) and look for entries SAP_CIN*

o What will the country install program do?

The country install program (invoked using O035 transaction code) does pre customization of company code ‘0001’ so that you have some customization to start with which you can build further.

o Is there any pre customization available for CIN?

There is some customization available for CIN as a part of country install and other components are mentioned in the knowledge bank. There is no pre configured client for CIN.

o Must I always run country install after an upgrade?

You should run Country install program only if it is a fresh installation with no customization. If you have already started building the org structure and other process mapping then you must not run country install program.

o Is there an area menu for CIN?

From R3 46B the concept of area menus are not much used in SAP. So it is preferable to use roles for accessing the CIN transactions. You can also use the area menu J1ILN if you need.( Older versions of CIN had area menu J1IL)

o What do I do if the rates change after a budget?

Excise rates are maintained as master data in CIN. You just need to put in new rates in CIN master data to change it with the new validity. But if sales tax rates are being changed then you cannot change the tax codes. You should define new tax codes with new rates and use them. Changes to income tax rates have to be handled by defining new withholding tax codes.

CIN Basis

o Can I have CIN as well as other Add-ons in one box?

You can have multiple add-ons technically in one box from 46C on wards. But before doing this you need to contact SAP support who can guide for the necessary precautions.

o Is it possible for me to have multiple country versions in one client? Are there any installations with multiple country versions in one client?

There are installations with multiple country versions in one client. From 46C onwards CIN is technically conflict free and can exist with other country versions. However the installation process of multiple add-ons is not stright forward and you must contact pre sales before taking up a similar project.

o How do I know which support pack I should move onto?

It is always beneficial to move to the latest support pack which is supported by CIN. This will ensure that all the known errors until that point is solved. For knowing which is the approved level for India please look into note 81456. This note gets updated whenever there is a new add-on patch for CIN. You can look at the existing support packs at the service marketplace.

o After importing support packs will the functionality change?

Support packs are collections of notes and should not change the basic functionality. They are mainly bug fixes. The support pack gives a list of notes for which the corrections are included.

o Do I need to do an integration test after CIN support pack import?

Some testing is required for the critical processes after a support pack implementation. It would also be a good practice to keep some CATTs to be done after every SP import.

o Can I run Internet sales with excise taxes?

You need to have separate pricing procedure to make this possible. It would be best to contact SAP product management group on this.

o When I try to create a new object of CIN which came through note, the system says that the name range cannot be used. What should I do?

Check if the name space entries are available using transaction se03. Also check whether the name space is modifiable.

o Is there any partner project for CIN?

For creating new objects in CIN name range you need to maintain the partner project ids ‘1I’ and ‘2I’ in tables RESP and RESPT using transaction SM30.

o Can I make a client copy excluding CIN?

It is not possible to exclude CIN data while making a client copy.

o When I maintain some of the CIN master data system is asking for a transport request. How do I avoid it?

This has been rectified. If it is still a problem please report in SAP support. Also please check the following. Go into SE11. Enter the table name for which the maintenance is giving a problem. Display the table. Take the option – Utilities – table maintenance generator. Check the recording routing. It should be no, or user recording routine.

o Are there any language versions for CIN?

No CIN is available only in English.

o Are there any code page restrictions for CIN while using with other language versions?

No there are no code page restrictions for CIN. CIN does not need a code page by itself. So it can be put with other languages.

o I have a system with R3 and CIN. Can I upgrade R3 alone leaving CIN?

You cannot upgrade CIN alone. If you opt to ignore CIN and continue with the upgrade of R3 alone then the CIN objects get deactivated in the system and it is not usable any more. A re install might lead to problems and loss of data.

o Even after CIN is installed when I try to run any CIN program system is saying CIN is not installed. Why?

You need to apply note 411079

o How do I create new authorization groups?

You have to run a report RKSCUS09. Enter the authorization objects as S_TABU_DIS and then you can maintain new authorization groups under this.

o If another add-on is already installed then can I install CIN on top of it?

You need to take permission from the other add-on for this process. Contact SAP support.

o How long does a CIN installation take?

The time depends on the hardware that is available. If 4 processors and 2 GB RAM is allocated to that instance then it takes about 40 minutes. The maximum time is about 1.5 hrs

o How long does it take to upgarde CIN?

This will typically depend on the databse size. But this is rolled into the R3 upgrade and CIN composite upgrade will not add additional down time to the R3 upgrade.

o Multiple users are not able to use j1id at the same time. How do I resolve this?

Master data in CIN is maintained using default table maintenance views. This poses a restriction that only one user can change the data at any given time. This is because of the table level lock.

CIN MM

Customization

o How do I configure the system for partial credit functionality? (80:20 or 95:5 for Cenvatable: Inventorisable)

The relevant tax code should be configured with the required ratios for deductible and non-deductible tax components (JMO1 and JMO2 respectively).

The partial credit indicator at the excise registration ID level should also be marked.

o What are the settings involved to run the stock transport orders through the GRPO route?

For a receiving plant a customer has to be created.

For an issuing plant a customer and a vendor has to be created and this vendor is to be linked to this customer.

Both the customers have to be assigned to the plant in the Stock Transport Order settings. (Transaction:OMGN)

o How do I change the debit account that is proposed in Excise JVs?

In the company settings of CIN IMG select the indicator “Debit Account Overwrite” for the required company code.

o What is the difference between the ‘Depot’ indicator at the plant and the same at the excise group level?

At excise group level: It indicates that for the particular combination of the excise group and the plant, the plant will function as a depot.

At plant level: Irrespective of the plant being attached to any excise group, the plant attached to all the excise groups will function as a depot.

The setting at the plant level takes precedence over that at the excise group level.

o Can I change the non-cenvatable condition types that have been delivered?

No. The delivered non-cenvatable condition types (e.g. JMO2 etc.) are to be used as they are.

o Where will I change the input/output attribute of a field of the incoming excise invoice transaction?

In CIN IMG, under the Incoming Excise Invoices node the user can change the attributes of certain fields.

The user cannot add any additional fields other than the delivered ones.

o In the subcontracting attributes (CIN IMG) what is the difference between Movement Type Group Issues and Movement Type Group Receipts?

Movement types that issue material from the plant to the subcontractor are grouped under the movement type group issues. Similarly, the movement types that consume the materials when the processed goods are received into a plant are grouped under the movement type group receipts.

o In the Subcontracting Challan, How should I maintain number ranges for each series group?

Subcontracting Challan number ranges should not overlap between series group. For e.g it should NOT be as follows:

Series Group S1 : 000010000 to 000050000

Series Group S2 : 000020000 to 000050000

o Which are the Number range objects for which number ranges needs to be maintained?

Internal Document - J_1IINTNUM

RG23A Part1 and Part2 for all excise groups - J_1IRG23A1 & J_1IRG23A2

RG23C Part1 and Part2 for all excise groups - J_1IRG23C1 & J_1IRG23C2

PLA Part2 for all excise groups – J_1IPLA2

RG1 for all excise groups – J_1IRG1

RG23D Folio Number Generation – J_1IRG23D

Outgoing Excise Invoices against all series groups - J_1IEXCLOC & J_1IEXCEXP

Depot Excise invoice number – J_1IDEPINV

Dispatch Register Serial number – J_1IINTPR2

Subcontracting Challan against all series group – J_1I57FC

o Can I have multiple accounts for the same process?

Yes. This is possible by using the option of subtransaction type in association with the transaction type.

o What will transaction type do?

CIN uses transaction type as a way of differentiating between the various excise related processes. They are:

GRPO – Goods receipt for purchase order in Plant. Also used in Depot for a PO and material document

EWPO – Excise invoice without purchase order

57FC - Subcontracting Challan

57NR – Reversal and Recredit for Subcontracting Challan

CAPE- Capital Goods credit accounts

OTHR- Excise Invoice for Other Movements

DLFC- Factory Sale and Stock Transfer via SD

CEIV- Cancellation of Generated Excise Invoice

DIEX- Differential Excise Invoice Credit

MRDY- Excise Duty reversal without reference

MRRD- Excise Duty reversal if material used for non-production

MRWO- Excise Duty Reversal for Write off Cases

TR6C - PLA account adjustment through TR6 Challan

UTLZ- is used for determining the accounts when a JV is posted with an option of fortnightly payment

The Transaction type that are not used : 57CM, 57GR, CAGI, CAGR, GRTR.

o Can I have my own transaction types?

No. Various transaction types are used by CIN and are predelivered.

o Does the system determine the modvat clearing account during invoice verification?

Yes, provided the purchase order has deductible excise duty.

o What is EWPO? When do you use it?

EWPO stands for excise invoice without purchase order. For e.g. Excise invoice of free samples are captured in the system using EWPO.

o What is the functionality of the rejection code/reason code?

For some reasons if the user wants to withhold the availement of CENVAT credit, he can do so by posting the excise invoice with a reason code. This reason code will post the credit amount to an ONHOLD account. The user can later post this ONHOLD amount to the CENVAT accounts. There is an indicator associated with the reason code in CIN IMG, which will decide the posting of the credit amount to ONHOLD.

Note: It is recommended that separate GL accounts for ON-HOLD account for transaction type GRPO and CAPE. Account at GRPO will be used by Rejection code and the one at CAPE will be used for subsequent credit of capital goods.

During Excise Invoice cancellation, reason code can be used.

o After the transaction J1IEX has been executed, what is the significance of the status popup?

The status popup is a way to give information to the user of the various excise entries that happen during the course of running the transaction. For e.g. the status Part1 number: N.A. means that no part1 number was generated during the course of running the transactions.

o What does the ‘Restore Defaults’ checkbox on the Duty Values item tabstrip of J1IEX do?

Restore defaults option restores the material type, duty rates, quantities, duty values for that line item to the original values that were defaulted the time when the transaction is run.

o I always get the Item ok in J1IEX transaction as selected, how do I avoid that in case I don’t need the Item ok selected by default?

Mark the User Parameter ID ‘J4X’ with ‘X’ for a User ID.

o Can you explain the different rows of duties on the Duty Values item tabstrip of J1IEX?

Credit availed: Excise duty whose credit has been availed.

Inventorized duty: It is the excise duty for which credit has not been availed but has been added / will be added to the material cost.

Credit due: Excise duty whose credit has not been availed because the goods have not been received and entered in the RG23 Part1 register.

Credit Available: Excise duty whose credit has not been availed, but the goods have been received and entered in the RG23 Part1 register.

ST: Sales Tax for the line item.

o What does the ‘Calculate excise duty based on rates’ checkbox on the Duty rates item tabstrip of J1IEX do?

The user has the option of changing the duty rates for the line items in the excise invoice. If the user wishes to change the duty values based on the changes in the duty rates he needs to select the ‘Calculate excise duty based on rates’ checkbox.

o What is a single step credit availment process?

The process of capturing the excise invoice and availing credit of excise duty in a single step is now possible if the excise is captured with reference to a goods receipt for a purchase order. This is possible even in the EWPO cycle.

o When are the ‘Simulate CENVAT Credit’ and the ‘Post CENVAT’ buttons active?

These buttons will be active if the entry has been posted in the RG23 Part1 register for the GRPO cycle and there is credit available to be availed.

These buttons will always be active during the EWPO cycle.

The user should have the necessary authorization to post an excise invoice.

o While capturing an excise invoice for EWPO (without reference to any material document), how does one enter multiple lines?

For the first line item the user needs to enter the details of the line item such as the material number, plant, chapter ID, duty rate, quantity etc. follwed by pressing ENTER. To enter a new line item the user needs to press the ‘Next Item’ Button.

o When price control 5 is set for a purchase order, how is excise duty computed?

The base value of the material is the value on the date on which the vendor's excise invoice is created.

The duty is computed on this base value.

o How are the accounts determined when capital goods are procured?

When cenvat credit for the capital goods are availed for the first 50%, the credit accounts are picked from GRPO transaction type and debit accounts from the CAPE.

During Subsequent credit availment both credit and debit entries are picked from CAPE.

o What needs to be done if the Excise Invoice quantity is not equal to GR quantity?

Excise Invoice Quantity is less than GR quantity: System will default warning message and this can be configured in CIN IMG as required. Apart from that the Part1 entry will be done only for the open quanity in the excise invoice. And the remaining will not appear in the excise registers. Since nothing can be done about it, ensure you do another GR for the difference quanitity with no excise entry. Or in the case excise invoice for this difference will be dispatched by the vendor later, you can create a separate GR and just create a Part1 entry.

Excise Invoice Quantity is greater than GR quantity: Credit will be allowed only for GR quantity. To take credit for remaining check your Multiple GR for an excise invoice setting at excise group.

o What should be my accounting entry in procurement?

For Domestic Procurement of Raw Material

During GR

Material Stock Dr.

GR/IR clearing Cr.

During Excise Invoice Credit

Cenvat Account Dr.

Cenvat Clearing Cr.

During Invoice Verification

Cenvat Clearing Dr.

GR/IR Clearing Dr.

Vendor Payable Cr.

For Domestic proceurement of Capital Goods

During GR

Material Stock Dr.

GR/IR clearing Cr.

During Excise Invoice Credit

Cenvat Account Dr. (50%)

Cenvat On-hold Dr. (50%)

Cenvat Clearing Cr.

During Invoice Verification

Cenvat Clearing Dr.

GR/IR Clearing Dr.

Vendor Payable Cr

Subsequent of Capital Goods

Cenvat Account Dr. (50%)

Cenvat On-hold Cr. (50%)

For Import Procurement of Raw Material

During Customs Duty Clearing invoice

Custom Clearing Dr.

Custom Payable Cr.

During GR

Material Stock Dr.

GR/IR clearing Cr.

During Excise Invoice Credit

Cenvat Account Dr.

Custom Clearing Cr.

During Invoice Verification

GR/IR Clearing Dr.

Vendor Payable Cr.

For Excise Duty Credit of Raw Material without PO

Cenvat Account Dr.

Cenvat Clearing Cr.

For Excise Duty Reversal through Excise JV

Cenvat Clearing Dr.

Cenvat Account Cr.

o What should be my accounting entry when the goods are issued through MM and excise invoice is created (J1IS & J1IV)?

During Excise Invoice Creation

Cenvat Suspense Account Dr.

Cenvat payable Cr.

For TR6C Challan

PLA Account Dr.

PLA on hold Account Cr.

During Fortnightly Utilization

Cenvat payable Dr.

Cenvat Account Cr.

PLA Account Cr.

Note: Cenvat Suspense Account should be cleared apprpiately using FI JV’s.

Subcontracting

o How is the recursive BoM scenario (the parent and the child material being the same) handled in subcontracting?

The movement type group for receipts should hold the 543-movement type only instead of the 101-movement type.

o For which of the movements will I run the Quantity Reconciliation for the subcontracting challan?

Quantity reconciliation is run for the movement types that automatically generate the consumption line, for e.g. movement 105, 101. This transaction is also run for reversals of issue movements, for e.g. 542.

o How do I delete challans assigned to the Goods Receipts document?

Goto transaction for Quantity Reconciliation (J1IFQ). Use Menupath Quantity Reconcile->Delete assigment

o What should be my accounting entry in subcontracting reversal / Recredit ?

For Subcontracting Challan Reversal

Cenvat Reversal Dr.

Cenvat Account Cr.

For Subcontracting Challan Recredit

Cenvat Account Dr.

Cenvat Reversal Cr.

CIN FI

o What is the main difference between classic TDS and Extended Withholding tax (EWT)?

Classic TDS and EWT TDS refer to the two methods of handling Tax Deducted at Source transactions (referred to as “Withholding tax” in SAP terminology). You may use either of these to handle your TDS related transactions. While EWT allows you to create the tax line both at the time of invoice receipt and payments, classic TDS allows you to create the tax line only at the time of payment. In case of invoices, the tax line is generated using another transaction (J1INC).

o Can I have TDS on invoices as well as payments?

Yes, you can have TDS on both invoices and payments. However, you need to be using the EWT functionality to recognize TDS at the time of invoice receipt.

o How do I determine the TDS payment due date?

You determine the payment due date in CIN customizing.

In case you use the EWT functionality, this can be done by customizing the following link: J1IT  Tax Deducted at Source  Extended Withholding Tax  Determination of Tax Due Dates  Maintain Tax Due Dates for Tax Types

In case of the classic functionality, you may customize the following link: J1IT  Tax Deducted at Source  Payment Due Date Maintenance

You maintain the details of payment due dates for the TDS section and Recipient type. You may enter the number of days from the date of transaction for the section if it is meant to be maintained that way. In case the payment due date falls on the 7th of the next month, you may enter ‘777’.

o Can I have multiple TAN nos and still be able to use Classic TDS?

There are no standard customizing available in Classic TDS, the TAN No. can be entered during challan update and Annual Return.

o Can I handle works contacts tax requirements using CIN?

No. CIN does not support transactions that fall under the Works Contract Act.

o Where do Vendor PAN numbers get stored in Classic and EWT?

In classic TDS, vendor PAN numbers are stored in the vendor master  extras  texts

In EWT TDS, they are stored in the table J_1IMOVENDEWT under the field J_1IPANNO in in the vendor master  CIN Details .

o How do we represent type of deductor in Annual return? (The type could be Advertiser / Contractor)

J1IT  Classic Tax Deducted at Source TDS Section - Tax Code Relationship, specify the type for taxcode & section.

o Can I Post TDS document into Special posting periods?

Yes

o Can I modify the Certificate layout w/o altering the program?

Yes, you may change the layout of the certificate without modifying the program

o How do I put Business Place information when I am running the Customer interest post program?

The customer interest post transaction is run as a batch session. When you run the batch session, run it in the foreground mode and enter the business place details.

o What are the conditions for reversing the tax at the time of downpayment clearing?

If the Invoice against which the down payment clearing has already been challan updated (remitted the tax to govt) then it’s not possible to reverse the tax.

o What do I do when tax rates change

Classic:

o With prospective effect and retrospective effect

Challan update all the old documents with the old tax rate and then, the taxcode rate in the IMG should be changed and all the documents that are processed for challan update will have the new tax rate.

o With prospective effect

The taxcode rate in the IMG should be changed and all the documents that are processed for challan update will have the new tax rate.

o With retrospective effect

All documents for which the tax has been deducted as per the old rate has to be modified using the JV (J1INJV) .

o Which are the Number range objects for which number ranges needs to be maintained?

TDS Certificate Printing - J_1ICERT

Internal number range for challan – J_1ICHLNNO

Help1

HI

TAXINN: - Is a condition Record based. Means we have to create condition records for each and every condition type that you are going to use in the Pricing Procedure.

Since Version 4.7 this TAXINN came into picture and start using this.

And one of the important points is since 4.6 c CIN comes a separate package. But after introduction of 4.7 Version, CIN is coming the SAP Package itself and even in the Customer Master Record also we will find the CIN Icon.

Basically 4 types of Pricing Procedures are used in CIN (TAXINJ) and are as follows:

1.JDEPOT - Depot Sales

2.JEXPOR - Export Sales

3.JFACT - Factory Sales

4.JSTKTR - Stock Transfer

Country Version India comes with four pricing procedures (TAXINN) as follows:

• JINFAC (Sales from manufacturing plants)

• JINEXP (Export sales)

• JINDEP (Sales from depots)

• JINSTK (Stock transfers)

TAXINJ & TAXINN are Tax Procedures in India. TAXINJ is old version & TAX INN is new version. Both has its own advantage & disadvantage.

Upto 4.6C & partially 4.7 version of SAP, TAXINJ was used. TAXINJ is formula based calculation, in which we maintain the tax rate in Tax Code itself. The implication is that if say we are having product range such that say Excise rate differs for separate chapter ID, VAT, CST & permutation & combination of these, we require that many Tax Codes. For example:

Tax Code: A1

Taxes: 16% Excise Duty + 2% Education Cess + 12% VAT

Tax Code: A2

Taxes: 16% Excise Duty + 2% Education Cess + 8% VAT

Tax Code: A3

Taxes: 12% Excise Duty + 2% Education Cess + 12% VAT

Tax Code: A3

Taxes: 12% Excise Duty + 2% Education Cess + 8% VAT

From 4.7 version onwards of SAP, TAXINN is being recommended & used. TAXINN is more user friendly & condition record based. In TAXINN, Tax Codes are statistical & of not much relevance, but are required to be maintained in condition record for taxes condition type. This makes Tax Codes simpler. The implication is that if say we are having product range such that say Excise rate differs for separate chapter ID, VAT, CST, we need not have the tax codes to that combination. For example:

Tax Code: A1

Can be used for any rate of excise duty, as tax code is only required to be maintained statistically in condition record.

Tax Code: A2

Can be used for any rate of VAT, as tax code is only required to be maintained statistically in condition record.

IMG > Logistics - General > Tax on Goods Movement > India > Basic Settings >

Maintain Excise Registrations

Use

In this IMG activity, you maintain the data relating to your excise registrations.

Activities

enter each of your excise registrations, specifying a four-character code for each

Excise Registration IDs

In this activity, you maintain excise registration IDs. You create one ID for each of your business's excise registrations.

Activities

For each excise registration in your business create a registration ID, and state:

• Which taxes the registration covers (additional excise duty, special excise duty, and cess)

Fields for any taxes that are not covered will be hidden in transactions involving excise duty.

• The maximum number of items to be printed on each excise invoice

• Whether you are allowed partial CENVAT credits

Maintain Registration ID NUMBER, Excise code number, excise registration number

Excise Registration Number

A number assigned to each premises or location that has registered as a manufacturer with the excise authorities.

Every entity with an excise registration number is required to keep its own excise books.

ECC Number

Specifies the organization's ECC number.

Excise Registration Number

A number assigned to each premises or location that has registered as a manufacturer with the excise authorities.

Every entity with an excise registration number is required to keep its own excise books.

Excise range: Specifies the excise range in whose area the excise registration is located.

Excise Division

Specifies the excise division in whose area the excise registration is located.

Excise Collectorate

The code of the excise collectorate in whose area the excise registration is located.

Indicator for confirming AED usage

Additional Excise duty Percentage. These are leviable under the additional duties of excise act. These duties are in addition to basic excise duty and special excise duty.

Example

Additional Excise duty is leviable in case of textile products, tobacco and sugar.

Similarly for SED CESS

Number of Items in Excise Invoice

Shows the maximum number of line items that the authorities allow per excise invoice.

Dependencies

This information is used when you create an excise invoice in Sales and Distribution (SD) for factory sales and for other movements.

This information is used to split the transfer postings' items into multiple subcontracting challans.

Excise register set description

Description of the excise registers set.

Partial CENVAT Credit

Indicates that the excise registration ID is allowed to credit only a portion of its input excise duty to its CENVAT account.

Dependencies

When you post a goods receipt, the system splits the input excise duty on the material into its deductible and nondeductible amounts. It posts the deductible duty to the appropriate CENVAT account, and adds the nondeductible duty to the material value.

This information is also shown when you post the vendor's excise invoice.

Maintain Company Code Settings

Use

In this IMG activity, you maintain the data relating to your company codes.

Document Type for CENVAT Postings

It controls, which document type the system uses when making CENVAT postings in Financial Accounting (FI). Here ED is document type for cenvat posting.

Indicator for providing debit account overwriting

Debit Account Overwrite Indicator. X - Indicates debit accounts can be overwritten. Use In excise journal voucher transaction. It provides the flexibility to the user to enter the debit account of his choice depending on the nature of transaction.

Automatic balance Indicator

Excise year start month

The calendar month marking the beginning of the excise year

Use

this start month represents the month for the start of the excise invoice number range. The month 04 is entered here indicating April of the calendar year as the start month for excise invoices. Any change by the Excise authorities regarding start month should be taken care of by an entry in this field and initialization.

Excise invoice selection procedure

Excise invoice selection type. To indicate the method opted by the company for selecting the excise invoice. It can be either earliest or latest invoices that were received.

Number of excise invoices to be selected

indicates the number of excise invoices that needs to be selected in the excise invoice selection.

Days to be considered for excise invoice selection

Number of days from document date for excise invoice selection.

Example

If the value of this field is 20 and today is 28-03-97. The excise

invoice selection will show the related invoices only for the

period 08-03-97 to 28-03-97.

Document type for TDS FI posting

Financial accounting document type for TDS posting.

Document type for FI posting on Utilization

Financial accounting document type for TDS posting.

Indicator for item level excise duty round off

This indicator is to be used for deciding whether Item level excise duty amount rounding off is required during procurement cycle. If marked 'X' then the excise duty amount will be rounded off to the nearest rupee at the Purchase order level. This will not round off the CENVAT credit to be taken. If the duty amount is less than one rupee then no rounding is done

Rounding off of Excise duty for outgoing excise invoice

You can round off the Excise amount to be paid during an outgoing Excise invoice by marking this indicator as 'X'. The rounding is done at the item level for each item where the amount is greater than 1 Rupee.

Immediate Credit on Capital Goods

Instructs the system, when you verify a goods receipt for capital goods, to immediately post half of the input excise duty to the appropriate CENVAT accounts.

The rest is posted the CENVAT on hold account, for use in the following year.

CVD Clearing Account

Specifies which G/L account the system credits when you take a CENVAT credit on countervailing duty in the Incoming Excise Invoices transaction.

Exchange rate type

Key representing a type of exchange rate in the system.

Use

you enter the exchange rate type to store different exchange rates.

Example

you can use the exchange rate type to define a buying rate, selling rate, or average rate for translating foreign currency amounts. You can use the average rate for the currency translation, and the bank buying and selling rates for valuation of foreign currency amounts.

Exchange rate type to be used for Export excise duty converts

when you are creating an Excise invoice for export sales then the exchange rate for duty calculation will be picked up using this Exchange rate type.

Maintain Plant Settings

Use

In this IMG activity, you maintain excise information relating to your plants.

Plant Settings

In this activity, you maintain excise information relating to your plants.

Activities

For each plant:

• Specify whether it is a manufacturing site or a depot.

• Assign it an excise registration ID.

You can assign the same ID to more than one plant, if required.

Depot

indicates that the plant in question is a depot.

Dependencies

Depots are required to prepare register RG 23D, and follow different procedures for goods receipt and invoice generation.

Number of goods receipt per excise invoice.

Multiple GR for one excise invoice, Single credit

Multiple GR for one excise invoice, multiple credits

Maintain Excise Groups

Use

In this IMG activity, you define your excise groups. For each excise group, you can also control how various excise invoice transactions will work.

Excise Groups

In this activity, you define excise groups. An excise group allows you to maintain a separate set of excise registers and excise accounts. The RG 23A, RG 23C and PLA serial numbers are created for an excise group.

Recommendation

Under normal circumstances, excise authorities require every business to maintain only one set of excise registers and one set of accounts. But through exemption from the authorities, multiple books can be maintained.

If your company has only one set of excise registers, then you need to maintain only one excise group.

Activities

1. Create one excise group for each set of registers that you need to keep.

1. Assign the excise groups to plants.

2. Maintain whether this Excise group is for a depot or not.

3. If you receive only one consignment for an Excise challan then you can leave GR's per EI as blank. If you receive multiple GR's for a given Excise challan and would like to avail multiple credit mark the GRs per EI as 'Multiple GR's for one excise invoice, multiple credit'. Alternatively if you want to avail the credit only after all the goods receipts have been made mark it as ' Multiple GR for one excise invoice, single credit'.

4. If you want to automatically create Excise invoice during Sales cycle at the time of billing the tick the indicator 'Create EI'

5. During depot sales if you do not want to do RG23D selection and posting separately and would like to complete RG23D selection in one step mark the indicator 'RG23D Auto post'. This will post the selected records into RG23D automatically. You cannot cancel the selection later.

6. If the indicator 'Default GR qty' is marked system will default the Excise challan quantity on to the Goods receipt if the Excise invoice number is given in the pop-up.

7. If the indicator 'Folio no creates' is marked system will generate Folio numbers for RG23D during receipt of excise invoice into depot.

8. 'Automatic posting' when ticked will post the Excise invoice other movements automatically along with creation in single step.

9. 'Create Part1 for Block Stock' when marked will create a Part1 during the receipt of material into Blocked stock.

10. 'Create Part1 for STO' when marked will create a Part1 during the receipt of material through inter plant transfers.

11. 'Create Part1 for consumption stock' when marked will create a Part1 during the receipt of material into consumption stock.

Excise Group

Governs which set of excise registers a business transaction will be included in.

Following is the relation between excise group, plant and registration.

Dependencies

In define excise groups in Customizing.

Then, in transactions involving excise duty, for example, when you post a vendor's excise invoice, you specify which excise group you are using. This information tells the system which G/L accounts to post the excise to.

At the end of the period, when you come to prepare your excise registers, you create different sets for each excise group.

Indicates that the plant in question is a depot.

Dependencies

Depots are required to prepare register RG 23D, and follow different procedures for goods receipt and invoice generation.

GR Per Excise Invoice

Multiple GR for one excise invoice , Multiple credit

Multiple GR for one excise invoice , Single Credit

Create Excise Invoice Automatically

Instructs the system to automatically create a Sales and Distribution (SD) excise invoice immediately you create a commercial invoice or a pro forma invoice.

The excise invoice is created in the background.

Dependencies

If you want to make use of this function, you must also define the default plant, excise group, and series groups in Customizing for Sales and Distribution (SD), by choosing Excise Group - Series Group Determination.

RG23D Sales Creation and posting option

RG23D Automatic Option if selected will create Depot excise invoice by posting the selection of excise invoices in single step.

If this is not selected then you need to separately do RG23D selection followed by PGI and then RG23D verification and posting.

If you need automatic posting of RG23D selection then the Post Goods Issue should have been completed before running RG23D selection.

Default excise qty in GR

If this indicator is ticked then while doing Goods Receipt using 'MB01' system will default the excise invoice quantity on to the Goods receipt document.

Folio number for depo

Posting

If this indicator is marked then while creating Excise invoice for other movements system automatically does the Verify and Post. You need not separately Post the excise invoice

Also we can set indicator for creation of part 1 for:

Blocked stock

Stock transport order

Consignment stock

Maintain Series Groups

Use

In this IMG activity, you define the different excise series groups within your company. Series groups allow you to maintain multiple number ranges for the outgoing excise documents.

Based on excise regulations and exemptions from the authorities you can maintain multiple number series for outgoing documents. But each of these series has to be declared to the excise authorities.

Activities

• Define excise series groups based on type of outgoing document

• Assign series group to excise registration ID

• If no financial postings are required for an Excise invoice in this seris group then you tick the 'No utilization' indicator.

• If the CENVAT has to be paid immediately and you need not wait for the Fort nightly payment then mark the 'Immediate Utilization' indicator.

Example

You could define two series groups, group 001 for excise invoices, and group 002 for 57 F4 documents.

No account postings for CENVAT in sales cycle

No utilization Flag

If you do not need any CENVAT utilization for an excise invoice but would like to just generate an excise invoice then you need to mark this indicator.

IF the flag is checked then system will create an Excise invoice in the given Series group but there will not be any account postings or Part2 postings.

Immediate Utilization of CENVAT

Specifies that when you create an excise invoice, the system immediately pays the amount from CENVAT and creates the Part II entry. Such invoices will not be listed for fortnightly utilization.

If you have both fortnightly and immediate utilization for the same excise group, the account determination within CIN IMG should point to the ED interim account.

Account determination for immediate payment will be done exactly the same as being done for fortnightly utilization program.

Maintain Excise Duty Indicators

Use

In this IMG activity; you maintain the excise duty indicators.

IMG > Logistics - General > Tax On Goods Movement > India > Basic Settings > Determination of Excise Duty >

Select Tax Calculation Procedure

Use

In this IMG activity, you specify which tax procedure you want to use for determining excise duties and sales taxes on input materials in India.

• If you use condition-based excise determination, use a copy of the tax procedure TAXINN.

• If you use formula-based excise determination, use a copy of the tax procedure TAXINJ.

This tax procedure also supports condition-based excise determination, so that you can work with both concurrently.

We strongly recommend that new customers use condition-based excise determination. Note that once you have started using a tax procedure, you cannot switch to another one, otherwise you will not be able to display old documents.

Maintain Excise Defaults

Use

In this IMG activity, you define which tax procedure and pricing condition types are used in calculating excise taxes using formula-based excise determination.

Activities

If you use condition-based excise determination, fill out the CVD cond. field and leave all the others blank.

If you use formula-based excise determination, fill out all of the fields as follows:

• Enter the tax procedure and the pricing conditions that are relevant for excise tax processing.

• Specify the purchasing and sales conditions types used for basic excise duty, additional excise duty, special excise duty, and cess.

• Specify the conditions in the sales order that are used for excise rates.

• Specify the countervailing duty condition type used for import purchase orders.

See also

SAP Library -> Logistics -> Country Versions -> Asia-Pacific -> India -> Materials Management (MM) -> Condition-Based Excise Determination and -> Formula-Based Excise Determination.

IMG > Logistics - General > Tax On Goods Movement > India > Basic Settings > Determination of Excise Duty >

Condition-Based Excise Determination

Use

When you enter a purchasing document, for example, a purchase order, the R/3 System automatically calculates the applicable excise duties using the condition technique.

Features

The standard system comes with two tax calculation procedures. TAXINN is only supports condition-based excise determination, whereas TAXINJ supports condition-based excise determination and formula-based excise determination. Both tax procedures contain condition types that cover all of the excise duties and sales taxes applicable.

Since the exact rates of excise duty can vary on a large number of factors, such as which vendor you purchase a material from, or which chapter ID the vendor stocks the material under, you create condition records for every sort of excise duty.

When you come to enter a purchasing document, the system applies the excise duty at the rates you have entered in the condition records.

Activities

Customizing

Make for Logistics – General, byIndia the settings in Customizing Basic Excise Duties Usingchoosing Taxes on Goods Movements Account Settings Determination.Condition Technique and …

These activities include one activity where you define a tax code for condition-based excise determination.

Master Data

Create condition records for all excise duties that apply, and enter the tax code for condition-based excise determination in each.

Day-to-Day Activities

When you enter a purchase order or other purchasing document, enter the tax code for condition-based excise determination in each line item. The system then calculates the excise duties using the condition records you have created.

When the ordered materials arrive, you post the goods receipt and the excise invoice. The system posts the excise duty to the appropriate accounts for deductible input taxes when you enter the excise invoice.

Creating Condition Records for Excise Duty

1. In the command field, enter FV11 and choose .

2. Enter the condition type that you want to create a condition record for and choose .

The Key Combination dialog box appears.

3. Select the combination of objects that you want to create the condition record for.

On the dialog box, Control Code means "chapter ID."

So, for example, to create a condition record for a tax that applies to a combination of country, plant, and chapter ID, select Country/Plant/Control Code.

4. Choose.

5. Enter data as required.

In the Tax Code field, enter the dummy tax code that you have defined.

6. Save the condition record.

Formula-Based Excise Determination

Use

When you execute a business transaction involving materials that are subject to excise duty, the system automatically calculates the duty for you.

Prerequisites

In order for the system to be able to determine which rate of excise duty to apply, you must have maintained all the data on the Excise Rate access from the SAP EasyMaintenance screen, which you can Master DataAccess screen by choosing Indirect Taxes Excise Rate Maintenance.

You maintain the following types of data:

• Plant master data

You assign each of your plants an excise duty indicator. You can use the same indicator for all the plants with the same excise status from a legal point of view, such as all those that are in an exempt zone.

See also the information about manufacturers that are only entitled to deduct a certain portion of the duty (see Partial CENVAT Credit).

• Vendor master data

For each of your vendors with the same excise status from a legal perspective, you define an excise duty indicator. You must also specify the vendor type – for example, whether the vendor is a manufacturer, a depot, or a first-stage dealer. You must also stipulate if the vendor qualifies as a small-scale industry.

For each permutation of plant indicator and vendor indicator, you then create a final excise duty indicator.

• Customer master data

similarly, you assign the same excise duty indicator to each of your customers that share the same legal excise status.

Again, for each permutation of plant indicator and customer indicator, you then create a final excise duty indicator.

• Material master data

each material is assigned a chapter ID.

• Excise tax rate

For every chapter ID and final excise duty indicator, you maintain the rate of excise duty.

If your business only qualifies for partial CENVAT credit, you must customize your system accordingly.

Activities

Let us consider an example to illustrate how the system determines which rate of excise duty to apply to a material. Assume you are posting a sale of ball bearings to a customer. The system automatically determines the rate of excise duty as follows:

1. Looks up the customer master data to see what status you have assigned the customer.

Let's assume you've assigned the customer status 3.

2. Looks up the plant master data to see what status you have assigned the plant.

Similarly, your plant has status 2.

3. The system looks up the table under Excise Indicator for Plant and Customer to see what the final excise duty indictor is for customer status 3 and plant status 2: It is 7.

4. The system determines the chapter ID of the ball bearing for the plant.

Let’s assume the chapter ID at plant for the ball bearings is 1000.01.

5. Finally, the system looks up the table under Excise Tax Rate to see what rate of duty applies to chapter ID 1000.01 under status 7.

Define Tax Code for Purchasing Documents

Use: In this IMG activity, you define a tax code for the purposes of calculating excise duty when you enter purchasing documents.

Only carry out this activity if you use condition-based excise determination.

Activities: Create a new tax code, and set the tax code type to V (input tax). Do not make any other settings for it.

Assign Tax Code to Company Codes

Use

In this IMG activity, assign the tax code for purchasing documents to the company codes where it will be used.

Only carry out this activity if you use condition-based excise determination.

Classify Condition Types

Use

In this IMG activity, you specify which condition types you use for which sort of tax. Note that this only applies to condition types that you use with the new excise determination method.

The system uses this information when you create a document from another one. For example, when you enter an incoming excise invoice from a purchase order, or when you create an outgoing excise invoice from a sales order, the system determines the various excise duties in the excise invoice using the information that you have entered here.

In addition, when you create a purchasing document, the system only uses the condition types that you enter here.

• For taxes on purchases, use the condition types contained in the tax procedure.

• For taxes on sales, use the condition types contained in the pricing procedures.

Standard settings

The standard system comes with sample settings for the tax calculation procedures and pricing procedures.

Use these settings as a basis for your own.

IMG > Logistics - General > Tax on Goods Movement > India > Account Determination

Define G/L Accounts for Taxes

Use

In this IMG activity, you specify which G/L accounts you will use to record which taxes.

Requirements

you have set up G/L accounts for each of the processing keys listed below.

Activities

Assign an account to each of the following posting keys. The accounts for VS1, VS2, and VS3 are used as clearing accounts during excise invoice verification.

• VS1 (basic excise duty).

• VS2 (additional excise duty).

• VS3 (special excise duty).

• VS5 (sales tax setoff).

• MWS (central sales tax).

• MW3 (local sales tax).

• ESA (service tax)

• ESE (service tax expense)

Specify Excise Accounts per Excise Transaction

Use

In this IMG activity, you specify which excise accounts (for excise duty and CENVAT) are to be posted to for the various transaction types. Enter all the accounts that are affected by each transaction type.

If you use sub transaction types, enter the accounts for each sub transaction type as well.

Activities

Transaction type UTLZ is used for determining accounts only while posting excise JVs and also if the payment of excise duty has to be done fortnightly.

The fortnightly CENVAT payment utility picks up the credit side accounts from the transaction types of GRPO, EWPO, and TR6C for determining the CENVAT and PLA accounts. There is no separate transaction type for fortnightly payment.

Example

Excise TT DC ind Account name

GRPO CR CENVAT clearing account

GRPO CR RG 23 BED account

GRPO DR CENVAT on hold account

Specify G/L Accounts per Excise Transaction

Use

In this IMG activity, you assign the excise and CENVAT accounts to G/L accounts.

When you come to execute the various transactions, the system determines which G/L accounts to post to by looking at the:

• Excise group

• Company code

• Chart of accounts

Furthermore, if you want separate account determination settings within an excise group, you can also use sub transaction types.

Requirements

You have already:

• Defined the G/L accounts

• Defined the excise groups

• Maintained the transaction accounts

Activities

For each excise group, assign the excise and CENVAT accounts to G/L accounts. For most businesses, one set of accounts will suffice for all transactions.

Note

You need not remit the CENVAT to the excise department immediately, so maintain the credit account for transaction type DLFC as an excise duty interim account. This will be set off when you remit the duty.

Config setting needed to be done in order to get the Excise Details Screen in Material Master.

Even though this functionality is available in enterprise version, a small config step has to be made in Screen Sequences for Material Master.

Following document helps you to do this configuration.

Data 1. Go to IMG Define Structure ofLogistics General forMaterial Master Configuring the Material master Screen Sequence.Screen each

2. Select your screen sequence. Usually it would be 21. Select the same and click on Data Screen in the left frame.

3. Once the data screens are exhibited, select data screen no. 15, ie. SSq. 21and Scrn 15, which is “Foreign Trade: Import Data”. Select the same and click on Subscreens in the left frame.

4. Go to the last sub screen i.e. 21-15-6 - SAPLMGD1- 0001 and select the same. Click on tab view subscreen and ensure that the subscreen is blank.

5. Now in the last sub screen i.e. no.6 you delete SAPLMGD1 – 0001 and instead add SAPLJ1I_MATERIAL_MASTER and in the screen no. 2205.

6. Save the setting.

7. Create a Material Master and check whether in Screen Foreign Trade – Import, Excise related subscreen appears.

CIN - INDIAN TRANSACTION CODES

Transaction Codes for India

Transaction

Action

J1I2

Prepare a sales tax register

J1I3

Create outgoing excise invoices in batches

J1I5

Update the RG 1 and Part I registers

J1IEX

Incoming Excise Invoices (central transaction)

J1IEX_C

Capture an incoming excise invoice (excise clerk)

J1IEX_P

Post an incoming excise invoice (excise supervisor)

J1IF01

Create a subcontracting challan

J1IF11

Change a subcontracting challan

J1IF12

Display a subcontracting challan

J1IF13

Complete, reverse, or recredit a subcontracting challan

J1IFQ

Reconcile quantities for subcontracting challans

J1IFR

List subcontracting challans

J1IH

Make a CENVAT adjustment posting

J1IIN

Create an outgoing excise invoice

J1IJ

Assign excise invoices to a delivery for sales from depots

J1INJV

Adjust withholding tax Item

J1INREP

Reprint a withholding tax certificate for a vendor

J1IQ

Year-End Income Tax Depreciation Report

J1IR

Download register data

J1IS

Process an excise invoice (outgoing) for other movements

J1IU

Process exemption forms

J1IW

Verify and post an incoming excise invoice

J1IX

Create an incoming excise invoice (without reference to purchase order)

J2I8

Transfer excise duty to CENVAT account

J2IU

Remit excise duty fortnightly

J2I9

Monthly CENVAT return

J1IG

Excise invoice entry at depot

J1IGA

Create additional excise entry at depot

J2I5

Extract data for excise registers

J2I6

Print excise registers

Sail

Question Hi guys,

In TAXINN we have condition type JMOP for BED. But there is one more condition type JMX1 for the same BED set-off. Like-wise we have different condition types for ECS and SECESS. What is the siginificance of JMX1 etc. Why should we use these things in TAXINN

Anyhbody can helpme out.

Help2

Hi

With TAXINN, it is possible to have more than condition type for Excise say Excise Percentage,Excise per Qty etc. You may be aware that in Excise settings you can maintain only one condition type against BED,ECS etc. JEX1 is the condition which is sum of diff conditions say BED conditions maintained with condition record value 100% always. JEX1 is the condition maintained in Excise Settings for Cenvat purpose.

So below are the steps

1.Define your BED conditions like JMOP,JMOQ ,JEX1 etc

2.Set condition JEX1 in Pricing Schema so that it is subtotal of JMOP and JEX1

3.Maintain Condition record for JEX1 as 100%

4.Maintain JEX1 in Excise Settings for Condition Defaults against BED Cenvatable

Help3

Hi......

If u want to Inventorise the 50% of tax, then maintain the JMX1 as 50% otherewise maintain it as 100%.

Condition types for Ecess is JEC1 ,JEC2 ,JEX1 & JEX2 for SEcess JSEP, JSE1, JHX1 & JHX2.

If u maintain these condition types in TAXINN, whenever these taxs r applicable for the materials, the system automatically calculate the tax based on conditon records and base amount.

While making PO u hve to mention the tax code, then only the system will calculate the taxs if condition records exits.

regards

Durga

Img settings details Logistic tax on Taxes on Goods movement India Basic Settings

Excise Registration Details

Partial Cenvat Credit

Co code settings

Oveerwrite debit accounts

Subcontracting period

Document type for excise posting

Document type for Excise utilization

Overwrite Debit account

Immediate credit on Capital goods

First Month in Excise Year

Days to be considered for excise invoice selection

Number of Excise invoice to be selected

Excise invoice selection procedure

Excise duty round off in Purchase order and during outgoing excise invoice

Document type for Remittance challans

Exchange rate settings

Plant settings

Depot

Goods receipts per excise invoice

Excise Group

Copy excise invoice quantity to Goods Receipt

Create Excise invoice automatically.

Consumption

Create Folio number in case of depo

Automatically verify and post Excise Invoice for Depo Sales

MIGO Settings

Capture Excise invoice in MIGO

Post Excise Invoice Captured in MIGO

Enables users in manufacturing plants to post incoming and outgoing excise invoices in the standard Goods Movement transaction, (MIGO).

It also enables users in depots to post incoming excise invoices (for goods receipts) and RG 23D selections (for goods issues).

Use

Since when you post an excise invoice, the system creates an entry in register RG 23A or RG 23C (manufacturing plants) or register RG 23D (depots), activate this function only if the users working with this transaction are familiar with the excise duty system.

Dependencies

When you run the Goods Movement transaction, it shows two additional Excise Invoice tabs, one at header level and one at item level.

You enter the goods movement details and the excise invoice information. When you save the goods movement, you can also post the excise invoice.

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Post Incoming Excise Invoice at MIGO if duties are changed

Enables users to post incoming excise invoices in the standard Goods Movements transaction, (MIGO), even if they have changed any of the excise duty information in the Excise Invoice tabs.

Otherwise, if they change the excise duty, the transaction only allows them to capture the excise invoice, for verification and posting by an excise supervisor later on.

Create Excise Invoice or RG23D Selection in MIGO

Enables users in manufacturing plants to create outgoing excise invoices when they enter a goods issue in the standard Goods Movement transaction, (MIGO).

It also enables users in depots to select the appropriate RG 23D entries when they enter a goods issue.

Dependencies

When the user runs the Goods Movements transaction, it shows two additional Excise Invoice tabs, one at header level and one at item level.

In manufacturing plants, the user enters the goods issue details and the excise invoice information. When they save the goods movement, the system automatically saves the excise invoice, to be posted by an excise supervisor later on.

In depots, the user enters the goods issue details and assigns the goods to the RG 23D entries that the system created when the warehouseman posted the original goods receipt.

Update RG1 at MIGO

Creates an entry in register RG 1 immediately you create an outgoing excise invoice in the standard Goods Movement transaction, MIGO, if the goods in the excise invoice are finished goods.

Otherwise, the RG 1 entry is not created until you execute the Register Update program.

Series Group

Definition: excise document series group

Logistics - General (LO)

A system object that excise registrations use, in India, to organize the various types of excise documents into groups.

You group excise documents to reflect the way that the excise documents are organized in your excise registrations.

The system numbers each group separately, using a separate number range interval for each.

Example

An excise registration uses various types of excise documents, including outgoing excise invoices and ARE-1s. It creates a series group for the ARE-1s, but because it has so many excise invoices, it creates two series groups for these, one for finished materials, and one for raw materials.

No aacount postings for CENVAT in sales cycle

No utilization Flag

If you do not need any CENVAT utilization for an excise invoice but would like to just generate an excise invoice then you need to mark this indicator.

IF the flag is checked then system will create an Excise invoice in the given Series group but there will not be any account postings or Part2 postings.

Immediate Utilization of CENVAT

Specifies that when you create an excise invoice, the system immediately pays the amount from CENVAT and creates the Part II entry. Such invoices will not be listed for fortnightly utilization.

If you have both fortnightly and immediate utilization for the same excise group, the account determination within CIN IMG should point to the ED interim account.

Account determination for immediate payment will be done exactly the same as being done for fortnightly utilization program.

Definition: export period

Logistics - General (LO)

The maximum length of time that you are allowed to export goods from India after you have removed them from your premises.

If you exceed the export period, you forego the exemption from basic excise duty and you must pay the excise duty to the excise authorities.

Export Period

Specifies the export period.

Use

The export period applies to exports under bond and exports under claim for rebate.

Dependencies

If you try to change an ARE-1 after the end of the export period, the system issues a warning message. You then have two options:

• If you manage to obtain an extension from the excise department, you enter the extension date in the ARE-1. This effectively extends the ARE-1's export period.

• Otherwise, in the case of exports under bond you must pay the excise duty plus interest. In the case of exports under claim for rebate, you forego the excise duty already paid. You then close the ARE-1 as normal.

Definition: rebate period

Logistics - General (LO)

Under India's exports under rebate scheme, the maximum length of time that you are allowed to reclaim any excise duty that you have paid on exports.

Rebate Period

Specifies the rebate period.

Use

This applies to exports under claim for rebate only.

Dependencies

The system does not offer any functions for controlling which ARE-1s have exceeded the rebate period. SAP recommends that you create your own programs for this purpose, if you wish.

Fast Credit

Automatically credits the excise duty from ARE-1s back to the running bond account as soon as you enter the date on which you received the countersigned ARE-1 back from the customs office.

Otherwise, the system does not credit the duty back until the local excise authorities confirm that the export has been completed.

Use

Select this indicator if you have an agreement with your local excise department to this effect.

Definition: ARE-1 document

Logistics - General (LO)

A form, in India, that companies have to fill out when they remove excisable goods from their manufacturing plants for export.

The form exempts them from paying excise duty when they remove the goods from their premises.

ARE Document

Assign Tax Code to Company Codes

Use

In this IMG activity, assign the tax code for purchasing documents to the company codes where it will be used.

Only carry out this activity if you use condition-based excise determination.

See also

SAP Library -> Logistics -> Country Versions -> Asia-Pacific -> India -> Materials Management (MM) -> Condition-Based Excise Determination.